Monday, March 26, 2018

K+S annual report 2017

Front page of K+S annual 2017 report

Plenty of things has happened in K+S during 2017. They have a new CEO and a couple of new board members. They have managed to make their first delivery from Canada and they have closed down one potash mine in Germany which has for a long time had yearly productivity decreases and due to the opening of the new mine in Canada they could now take the decision to close it down.

For the report in full please click here and for the previous summary please go to K+S annual report 2016 and to find out more about them then please click on analysis of K+S 2017.

As a shareholder 2017 was not a year that will go down in history for being one of the better ones. I do however assume that Q1 in 2018 has been very good for K+S in terms of sale of salt in Europe and USA due to the snow masses that arrived. In 2017 the revenue increased slightly but nothing worth mentioning and the earnings also increased but that it was so tiny that it is definitely not worth mentioning.

Income statement K+S 2017

Conclusion: I expected much more from K+S for 2017. By the look of it I significantly underestimated the time it took to get the production in Canada up and running and to actually get a revenue flow coming back from it. I am also not impressed with the dividend that they pay out and on top of that will focus on decreasing debt in 2018 so I doubt that I as a shareholder will receive a big lump of money next year. I will remain as a shareholder.

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